Ordinary Daily Pay vs Relevant Daily Pay vs Average Daily Pay

For FBAPS (Family Violence, Bereavement, Alternate Public Holiday, Public Holiday and Sick Leave), there are two leave calculations as defined by the Holidays Act. They are Relevant Daily Pay (RDP) and Average Daily Pay (ADP).

Employment NZ defines RDP as “the amount the employee would have earned if they had worked on the day in question. It includes the employee’s usual pay plus incentive payments, overtime, cash value of board or lodgings provided, and other regular allowances (except non-taxable reimbursements).”

If your employees only work 8 hours every day and have no additional payments as listed by Employment NZ, then you can pay 8 hours multiplied by their pay rate for their FBAPS leave.

In Profitz, we’ve named it Ordinary Daily Rate because this figure is obtained by the Ordinary Week Amount divided by Days Per Week as you’ve informed the system, for example $1000 per week divided by 5 days per week. We recognise that Ordinary Daily Rate is not the same as the legislative RDP.

If your employees are on a roster, you need to actively change the Daily Rate to reflect the accurate daily amount your employee would have received if they have worked.

If your employees work differing hours in a pay period, you need to use Average Daily Pay. This is calculated by the total they have earned over the last 52 weeks divided by the total number of days they were paid.